Michael Turin

Michael Turin asked for context on why the Q4 subscription revenue guide of 18% is lower than the cRPO growth rates, and if the public sector comment is specifically tied to the Q4 guide or other assumptions.

Answer

CFO and President Gina Mastantuono confirmed that the public sector will be a factor in the Q4 guide. She also noted that the full Q3 revenue beat was passed to the full year, and on-premise dynamics are a factor in Q4. She reiterated that demand trends remain healthy, and the pipeline for Q4 looks strong.

Michael Turin asked for context on why the Q4 subscription revenue guide of 18% is lower than the cRPO growth rates, and if the public sector comment is specifically tied to the Q4 guide or other assumptions.

Answer

CFO and President Gina Mastantuono confirmed that the public sector will be a factor in the Q4 guide. She also noted that the full Q3 revenue beat was passed to the full year, and on-premise dynamics are a factor in Q4. She reiterated that demand trends remain healthy, and the pipeline for Q4 looks strong.

Michael Turin asked about the strength in Tier 1 deals, specifically whether it's tied to fiscal year-end or other factors, and if AI opportunities are more prevalent with larger insurers or smaller, more nimble tiers (3-5) for earlier adoption.

Answer

President John Mullen clarified that Tier 1 momentum is not tied to year-end but to the extensive work, proof-outs, and customer cadence involved in these large deals. CEO Mike Rosenbaum explained that AI opportunities are diverse; smaller insurers benefit from Guidewire's productized capabilities, while larger ones with significant IT resources may develop some AI solutions internally. He expects a mix of adoption across different tiers.